Portuguese Housing Prices to Rise 5%

Robust second-home buying and more lending are helping to spur the market, a new survey says

Robust demand for homes in Portugal amid a limited supply is expected to push prices up around 5% in 2018, according to the latest survey by the British Royal Institute of Chartered Surveyors and Portugal-based real estate firm Confidencial Imobiliário.

The organizations, which publish a monthly joint report, revised their outlook for the coming year, increasing their price predictions to 5% from 4%, based on strong market fundamentals. Their latest figures reflect transaction activity through October.

While the report doesn’t break out the luxury market, Western Algarve is the center of high-end activity in the country. In 2016, prime prices in that region grew at a moderate 3% rate, according to data from Knight Frank’s Prime International Residential Index.

Portugal’s market is also benefiting from new lending activity, said Ricardo Guimarães, director of Confidencial Imobiliário in the report.